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20 Mar 2019 | 14:39

Block Energy encounters hydrocarbons with horizontal well in Georgia

Block Energy said it had encountered hydrocarbons as expected from a horizontal side-track well just completed in the nation of Georgia.

Well 16a at the company's West Rustavi field had reached a total depth of 2,659 metres.

Live oil shows and frequent spikes in gas readings provided strong indications that the naturally fractured hydrocarbon reservoir Middle Eocene formation was entered, the company said.

Hydrocarbon readings were also derived from field interpretation of drill cuttings.

The company said it was aiming for a gross initial flow rate of 325 barrels of oil per day at the well, which would generate free cash flow of around $3.6m and payback well costs in less than six months.

'This is a critical milestone as we seek to unlock West Rustavi's company-making potential and demonstrate our operational competence to our stakeholders and the broader market,' chief executive Paul Haywood said.

'Achieving our forecast of a 325 bopd production rate at 16a would move the company well above its corporate production breakeven rate.'

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At 2:39pm: (LON:BLOE) Block Energy Plc Ord Shs Gbp0.0025 share price was 0p at 4p

Story provided by StockMarketWire.com
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